MANUEL A. SIERRA, M.D., AND ARLENE E. SANTANA, F/K/A ARLENE SIERRA, APPELLANTS,
v.
INTERNATIONAL MEDICAL CENTERS, INC., A FLORIDA CORPORATION IN LIQUIDATION, APPELLEE
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
Sierra and Santana sought to foreclose a mortgage on property owned by International Medical Centers, Inc., which was in liquidation. The trial court denied their motion to amend the complaint, finding that the liquidation order automatically stayed all proceedings against IMC. The appellate court reversed, holding that Florida's automatic stay provision does not prevent foreclosure actions on secured claims like mortgages.
The automatic stay provision of section 631.041(1)(d) does not prevent foreclosure actions on secured claims as defined by statute. A foreclosure action may proceed in the county where the land is located, and any resulting deficiency may be treated as a claim against general assets in the liquidation proceeding.
[1] An automatic stay under section 631.041(1)(d), Florida Statutes, does not prevent a foreclosure action on a secured claim.
[2] A suit to foreclose a mortgage on real property must be brought in the county where the land is located.
Previewing 2 of 3 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“An application or petition under s. 631.031 operates as an automatic stay applicable to all persons and entities, other than the receiver, which shall be permanent and survive the entry of an order of conservation, rehabilitation, or liquidation, and which shall prohibit... Any act to create, perfect, or enforce a lien against property of the insurer, except a secured claim as defined in s. 631.011(15)”
The amended statute clarifying that the automatic stay does not apply to secured claims such as mortgages
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceSierra and Santana, as mortgagees, filed a foreclosure action in Dade County circuit court against International Medical Centers, Inc., the mortgagor …
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Secured Claims cases and more on FLexlaw
FERGUSON, Judge.
Appellants/mortgagees, Sierra and Santana, commenced this Dade County circuit court action to foreclose a mortgage on a parcel of real estate located in Dade County. The property is owned by appel-lee/mortgagor, International Medical Centers, Inc. (IMC), a Florida corporation in liquidation. Appellants’ motion for leave to amend the complaint was denied by an order which adjudged that an “Order of Liquidation and Injunction for the Estate of International Medical Centers (“IMC”), which order was entered by the Leon County circuit court on June 25, 1987, ... stays all proceedings in this case as to IMC.” The question presented is whether section 631.041, Florida Statutes, provides an automatic stay of an action to foreclose a mortgage where the collateral is in the custody of a receiver in a liquidation proceeding. We hold that it does not and reverse.
While this appeal was pending, the legislature amended section 631.041, effective August 5, 1988, which previously was entitled “Injunctions” and now is termed “Automatic stay, relief from stay, injunctions”. Section 1(d) of that provision clarifies the legislative intent and sustains the appellants’ position. As amended the statute now provides:
(1) An application or petition under s. 631.031 operates as an automatic stay applicable to all persons and entities, other than the receiver, which shall be permanent and survive the entry of an order of conservation, rehabilitation, or liquidation, and which shall prohibit:
* * * * He *
(d) Any act to create, perfect, or enforce a lien against property of the insurer, except a secured claim as defined in s. 631.011(15); _ (emphasis added)
Section 631.011(15) states:
(15) “Secured claim” means any claim secured by mortgage, trust deed, pledge, deposit as security, escrow, or otherwise but does not include a special deposit claim or a claim against general assets.... (emphasis added)
We hold, in response to the question presented, that the automatic stay provision of section 631.041(l)(d) does not prevent a foreclosure action on a secured claim. The foreclosure action may proceed here in Dade County where the land is located. Georgia Cas. Co. v. O’Donnell, 109 Fla. 290, 147 So. 267 (1933) (suit to foreclose mortgage is local and must be brought in county where land lies). See also § 47.011, Fla.Stat. (1987). If there is a deficiency it may be treated in the liquidation proceeding as a claim against the general assets along with any other unsecured claims. See § 631.191(2)(a), Fla.Stat. (1987).
Reversed and remanded.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Nova Ins. Grp., Inc. v. Fla. Dep't OF Ins., 606 So. 2d 429 (Fla. 1st DCA 1992)…in section 631.011(15), and therefore, it should not have been stayed pursuant to section 631.041(l)(d). A good example of the application of the secured claim exemption may be found in Manuel A. Sierra, M.D. v. International Medical Centers, Inc., 538 So. 2d 102 (Fla. 3d DCA 1989). Section 631.041(2) describes the procedure by which a person affected by the automatic stay may seek relief from the stay. The statute provides: Upon written request of a person or entity subject to the stay against obtaining o…
Authorities Cited
- Ga. Cas. Co. v. O'Donnell, 109 Fla. 290 (Fla. 1933)